Shriram Properties will invest around Rs 750 crore this fiscal on construction of its ongoing and new residential projects as it looks to scale up business amid strong housing demand, its CMD M Murali said.
Bengaluru-based Shriram Properties had spent Rs 500 crore in the last financial year on construction works.
In an interview, Shriram Properties Chairman and Managing Director M Murali highlighted that the company achieved a 25 per cent growth in sales bookings to touch an all-time high of Rs 1,846 crore last fiscal, on higher volumes and better price realisation.
Asked about the target of sales bookings for this fiscal, Murali said, “We are looking at about 20 per cent growth in volume terms and 25 per cent growth in value.”
Sales volumes stood at 4.02 million square feet in the last fiscal, which is a new record, as against 3.8 million square feet in 2021-22.The average annual sales realisation grew 8 per cent annually during the last financial year.
Shriram Properties is currently developing many housing projects and plans to launch multiple housing projects this fiscal to tap the rise in housing demand, Murali said.
Asked about construction spend, he said, “last financial year, we spent Rs 500 crore and this year we are aiming at about Rs 750 crore. This will mostly be in existing projects and some new ones which we will launch.”
Shriram Properties has delivered 36 projects so far, mostly in Bengaluru and Chennai. It is currently developing 26 projects/phases and has another 25 projects in the pipeline.
“Market is really good. There has been a very good demand for the mid-income and affordable segment. So, I expect the demand to continue for 3-5 years comfortably due to various factors. Macroeconomic situation is very good and the overall stability in the country is good,” Murali said.
A consistent growth across all industries is helping the growth of the real estate sector in a phenomenal way, he observed.
On the financial performance front, the company’s net profit jumped nearly four times to Rs 68.2 crore last fiscal, from Rs 18.03 crore in the previous year.
Total income grew to Rs 813.92 crore last fiscal, from Rs 517.8 crore in the 2021-22 financial year.
Shriram Properties, which got listed on stock exchanges in December 2021, is one of South India’s leading residential real estate development companies. It had raised around Rs 600 crore through its Initial Public Offering (IPO).
Key markets for Shriram Properties include Bengaluru, ChennaI and Kolkata, which together account for nearly 85 per cent of its development activities.